Question 1    True/False  1 of 1 point(s)    
  
Horizontal differentiation is concerned with how the firm decides to divide itself into subunits.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 446 
 


  Question 2    True/False  1 of 1 point(s)    
  
Performance ambiguity exists when the causes of a subunit's poor performance are not clear.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 460 
 


  Question 3    Multiple Choice  0 of 1 point(s)    
  
Which of the following is not true regarding a worldwide area structure?  
 Your Answer:  A worldwide area structure tends to be favored by firms with a low degree of diversification  
Correct Answer:  Decision-making responsibilities are centralized  
Feedback: Difficulty: HardPage: 449-450 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
__________ are the manner in which decisions are made and work is performed within the organization.  
 Your Answer:  Practices  
Correct Answer:  Processes  
Feedback: Difficulty: MediumPage: 442 
 


  Question 5    True/False  1 of 1 point(s)    
  
Culture is a social construct ascribed to societies, including organizations.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 464 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
There are five main arguments for decentralization. These are:  
 Your Answer:  facilitates coordination, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization, can result in better decisions because decisions are made closer to the spot, greater flexibility, decreases control  
Correct Answer:  frees top managers to focus on critical issues by delegating more routine issues to lower-level managers, provides employees a greater degree of individual freedom and control over their work, greater flexibility, can result in better decisions because decisions are made closer to the spot, increases control  
Feedback: Difficulty: HardPage: 445 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
The weakness of the worldwide area structure is that it:  
 Your Answer:  is often clumsy and bureaucratic  
Correct Answer:  encourages fragmentation of the organization into highly autonomous entities  
Feedback: Difficulty: MediumPage: 450 
 


  Question 8    True/False  1 of 1 point(s)    
  
A firm's vertical differentiation determines where in its hierarchy the decision-making power is concentrated.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 444 
 


  Question 9    True/False  1 of 1 point(s)    
  
By organizational architecture we mean the totality of a firm's organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 440 
 


  Question 10    True/False  1 of 1 point(s)    
  
We define processes as the manner in which decisions are made and work is performed within the organization.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 463 
 

Question 1    Multiple Choice  1 of 1 point(s)    
  
__________ controls involve setting goals for subunits to achieve.  
 Your Answer:  Output  
Correct Answer:  Output  
Feedback: Difficulty: MediumPage: 458 
 


  Question 2    Multiple Choice  1 of 1 point(s)    
  
There are four main arguments for centralization. These are:  
 Your Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Correct Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Feedback: Difficulty: HardPage: 444 
 


  Question 3    Multiple Choice  0 of 1 point(s)    
  
__________ systems are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.  
 Your Answer:  Statutory  
Correct Answer:  Control  
Feedback: Difficulty: EasyPage: 442 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
Which of the following selections correctly lists the formal integrating mechanisms from the highest level of complexity to the lowest?  
 Your Answer:  Teams, matrix structure, liaison roles, direct contact  
Correct Answer:  Matrix structure, teams, liaison roles, direct contact  
Feedback: Difficulty: HardPage: 455 
 


  Question 5    True/False  1 of 1 point(s)    
  
Processes are the manner in which decisions are made and work is performed within the organization.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 442 
 


  Question 6    True/False  1 of 1 point(s)    
  
A firm's vertical differentiation determines where in its hierarchy the decision-making power is concentrated.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 444 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
__________ managers are concerned with issues such as pricing, promotions, distribution, and market value.  
 Your Answer:  Production  
Correct Answer:  Marketing  
Feedback: Difficulty: MediumPage: 454 
 


  Question 8    Multiple Choice  0 of 1 point(s)    
  
The weakness of the worldwide area structure is that it:  
 Your Answer:  is often clumsy and bureaucratic  
Correct Answer:  encourages fragmentation of the organization into highly autonomous entities  
Feedback: Difficulty: MediumPage: 450 
 


  Question 9    True/False  0 of 1 point(s)    
  
Output controls exist when employees "buy into" the norms and value systems of the firm.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 459 
 


  Question 10    Multiple Choice  0 of 1 point(s)    
  
Which of the following is not true regarding a worldwide area structure?  
 Your Answer:  A worldwide area structure tends to be favored by firms with a low degree of diversification  
Correct Answer:  Decision-making responsibilities are centralized  
Feedback: Difficulty: HardPage: 449-450 
 


Question 1    True/False  1 of 1 point(s)    
  
Culture is a social construct ascribed to societies, including organizations.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 464 
 


  Question 2    Multiple Choice  0 of 1 point(s)    
  
__________ managers are concerned with issues such as pricing, promotions, distribution, and market value.  
 Your Answer:  Production  
Correct Answer:  Marketing  
Feedback: Difficulty: MediumPage: 454 
 


  Question 3    Multiple Choice  0 of 1 point(s)    
  
Which type of control tends to be most widely used in small firms, where it is seen in the direct supervision of subordinates' actions?  
 Your Answer:  Bureaucratic control  
Correct Answer:  Personal control  
Feedback: Difficulty: MediumPage: 458 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
__________ are the manner in which decisions are made and work is performed within the organization.  
 Your Answer:  Practices  
Correct Answer:  Processes  
Feedback: Difficulty: MediumPage: 442 
 


  Question 5    Multiple Choice  1 of 1 point(s)    
  
There are four main arguments for centralization. These are:  
 Your Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Correct Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Feedback: Difficulty: HardPage: 444 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
The person in a subunit that is responsible for coordination with another subunit is referred to as a:  
 Your Answer:  manager  
Correct Answer:  liaison  
Feedback: Difficulty: MediumPage: 455 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
__________ managers are typically concerned with issues such as capacity utilization, cost control, and quality control.  
 Your Answer:  All-purpose  
Correct Answer:  Production  
Feedback: Difficulty: MediumPage: 454 
 


  Question 8    Multiple Choice  0 of 1 point(s)    
  
The main problem with the worldwide product division structure is:  
 Your Answer:  that it rarely provides an organizational context that enhances the consolidation of value creation activities at key locations necessary for realizing location and experience curve economies  
Correct Answer:  the limited voice it gives to area or country managers  
Feedback: Difficulty: MediumPage: 451 
 


  Question 9    True/False  1 of 1 point(s)    
  
Direct contact between subunit managers is the simplest integrating mechanism.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 455 
 


  Question 10    Multiple Choice  0 of 1 point(s)    
  
__________ systems are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.  
 Your Answer:  Statutory  
Correct Answer:  Control  
Feedback: Difficulty: EasyPage: 442 
 

Question 1    True/False  1 of 1 point(s)    
  
Performance ambiguity exists when the causes of a subunit's poor performance are not clear.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 460 
 


  Question 2    True/False  1 of 1 point(s)    
  
By organizational architecture we mean the totality of a firm's organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 440 
 


  Question 3    True/False  0 of 1 point(s)    
  
The formal integrating mechanism with the lowest complexity of integrating mechanisms is matrix structures.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 455 
 


  Question 4    Multiple Choice  1 of 1 point(s)    
  
There are four main arguments for centralization. These are:  
 Your Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Correct Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Feedback: Difficulty: HardPage: 444 
 


  Question 5    True/False  0 of 1 point(s)    
  
Incentive systems are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 442 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
__________ exists when the causes of a subunit's poor performance are ambiguous.  
 Your Answer:  Statutory ambiguity  
Correct Answer:  Performance ambiguity  
Feedback: Difficulty: EasyPage: 460 
 


  Question 7    Multiple Choice  1 of 1 point(s)    
  
A system of informal contracts between managers within an organization is referred to as a(n)  
 Your Answer:  management network.  
Correct Answer:  management network.  
Feedback: Difficulty: MediumPage: 456 
 


  Question 8    Multiple Choice  0 of 1 point(s)    
  
The main problem with the worldwide product division structure is:  
 Your Answer:  that it rarely provides an organizational context that enhances the consolidation of value creation activities at key locations necessary for realizing location and experience curve economies  
Correct Answer:  the limited voice it gives to area or country managers  
Feedback: Difficulty: MediumPage: 451 
 


  Question 9    Multiple Choice  0 of 1 point(s)    
  
Which of the following is not true regarding a worldwide area structure?  
 Your Answer:  A worldwide area structure tends to be favored by firms with a low degree of diversification  
Correct Answer:  Decision-making responsibilities are centralized  
Feedback: Difficulty: HardPage: 449-450 
 


  Question 10    True/False  0 of 1 point(s)    
  
The formal integrating mechanism with the highest complexity of integrating mechanism is liaison roles.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 455 
 

Question 1    True/False  0 of 1 point(s)    
  
The formal integrating mechanism with the highest complexity of integrating mechanism is liaison roles.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 455 
 


  Question 2    Multiple Choice  1 of 1 point(s)    
  
There are four main arguments for centralization. These are:  
 Your Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Correct Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Feedback: Difficulty: HardPage: 444 
 


  Question 3    True/False  1 of 1 point(s)    
  
We define processes as the manner in which decisions are made and work is performed within the organization.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 463 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
The main problem with the worldwide product division structure is:  
 Your Answer:  that it rarely provides an organizational context that enhances the consolidation of value creation activities at key locations necessary for realizing location and experience curve economies  
Correct Answer:  the limited voice it gives to area or country managers  
Feedback: Difficulty: MediumPage: 451 
 


  Question 5    True/False  1 of 1 point(s)    
  
Processes are the manner in which decisions are made and work is performed within the organization.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 442 
 


  Question 6    Multiple Choice  1 of 1 point(s)    
  
A __________ tends to be favored by firms with a low degree of diversification and a domestic structure based on function.  
 Your Answer:  worldwide area structure  
Correct Answer:  worldwide area structure  
Feedback: Difficulty: MediumPage: 448-449 
 


  Question 7    Multiple Choice  1 of 1 point(s)    
  
__________ control is control through a system of rules and procedures that direct the actions of subunits.  
 Your Answer:  Bureaucratic  
Correct Answer:  Bureaucratic  
Feedback: Difficulty: MediumPage: 458 
 


  Question 8    True/False  1 of 1 point(s)    
  
Direct contact between subunit managers is the simplest integrating mechanism.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 455 
 


  Question 9    Multiple Choice  0 of 1 point(s)    
  
__________ are the manner in which decisions are made and work is performed within the organization.  
 Your Answer:  Practices  
Correct Answer:  Processes  
Feedback: Difficulty: MediumPage: 442 
 


  Question 10    True/False  0 of 1 point(s)    
  
Control systems are the devices used to reward appropriate managerial behavior.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 442 
 

Question 1    Multiple Choice  0 of 1 point(s)    
  
The need for coordination between the subunits of a firm is:  
 Your Answer:  lowest in global companies, is higher in international companies, higher still in multidomestic companies, and highest of all in transnational companies  
Correct Answer:  lowest in multidomestic companies, is higher in international companies, higher still in global companies, and highest of all in transnational companies  
Feedback: Difficulty: HardPage: 453-454 
 


  Question 2    True/False  1 of 1 point(s)    
  
Personal control is control by personal contact with subordinates.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 458 
 


  Question 3    True/False  0 of 1 point(s)    
  
The need for coordination is greatest in global firms.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 453-454 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
The weakness of the worldwide area structure is that it:  
 Your Answer:  is often clumsy and bureaucratic  
Correct Answer:  encourages fragmentation of the organization into highly autonomous entities  
Feedback: Difficulty: MediumPage: 450 
 


  Question 5    Multiple Choice  0 of 1 point(s)    
  
Decision making in a functional structure tends to be:  
 Your Answer:  decentralized  
Correct Answer:  centralized  
Feedback: Difficulty: MediumPage: 446 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
A(n) __________ tends to be adopted by firms that are reasonably diversified and, accordingly, originally had domestic structures based on product divisions.  
 Your Answer:  international geographic division structure  
Correct Answer:  worldwide product division structure  
Feedback: Difficulty: MediumPage: 450 
 


  Question 7    Multiple Choice  1 of 1 point(s)    
  
A __________ tends to be favored by firms with a low degree of diversification and a domestic structure based on function.  
 Your Answer:  worldwide area structure  
Correct Answer:  worldwide area structure  
Feedback: Difficulty: MediumPage: 448-449 
 


  Question 8    Multiple Choice  0 of 1 point(s)    
  
Which of the following selections correctly lists the formal integrating mechanisms from the highest level of complexity to the lowest?  
 Your Answer:  Teams, matrix structure, liaison roles, direct contact  
Correct Answer:  Matrix structure, teams, liaison roles, direct contact  
Feedback: Difficulty: HardPage: 455 
 


  Question 9    True/False  1 of 1 point(s)    
  
A worldwide area structure tends to be favored by firms with a low degree of diversification and a domestic structure based on function.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 449 
 


  Question 10    Multiple Choice  1 of 1 point(s)    
  
A system of informal contracts between managers within an organization is referred to as a(n)  
 Your Answer:  management network.  
Correct Answer:  management network.  
Feedback: Difficulty: MediumPage: 456 
 

Question 1    Multiple Choice  0 of 1 point(s)    
  
__________ contact between subunit managers is the simplest integrating mechanism.  
 Your Answer:  Indirect  
Correct Answer:  Direct  
Feedback: Difficulty: MediumPage: 455 
 


  Question 2    Multiple Choice  1 of 1 point(s)    
  
There are four main arguments for centralization. These are:  
 Your Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Correct Answer:  facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization  
Feedback: Difficulty: HardPage: 444 
 


  Question 3    True/False  0 of 1 point(s)    
  
The formal integrating mechanism with the highest complexity of integrating mechanism is liaison roles.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 455 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
The need for coordination between the subunits of a firm is:  
 Your Answer:  lowest in global companies, is higher in international companies, higher still in multidomestic companies, and highest of all in transnational companies  
Correct Answer:  lowest in multidomestic companies, is higher in international companies, higher still in global companies, and highest of all in transnational companies  
Feedback: Difficulty: HardPage: 453-454 
 


  Question 5    Multiple Choice  0 of 1 point(s)    
  
According to our textbook, the need for coordination between the subunits of a firm varies with the __________ of the firm.  
 Your Answer:  geographic location  
Correct Answer:  strategy  
Feedback: Difficulty: EasyPage: 453 
 


  Question 6    True/False  1 of 1 point(s)    
  
Production managers are typically concerned with production issues such as capacity utilization, cost control, and quality control.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 454 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
The main problem with the worldwide product division structure is:  
 Your Answer:  that it rarely provides an organizational context that enhances the consolidation of value creation activities at key locations necessary for realizing location and experience curve economies  
Correct Answer:  the limited voice it gives to area or country managers  
Feedback: Difficulty: MediumPage: 451 
 


  Question 8    Multiple Choice  0 of 1 point(s)    
  
Four types of control systems are used in multinational firms. These are:  
 Your Answer:  feedforward controls, output controls, input controls, and bureaucratic controls  
Correct Answer:  personal controls, bureaucratic controls, output controls, and cultural controls  
Feedback: Difficulty: MediumPage: 458 
 


  Question 9    Multiple Choice  0 of 1 point(s)    
  
In transnational firms, the need to realize location and experience curve economies requires some degree of __________ control over global production centers. However, the need for local responsiveness dictates the __________ of many operating decisions, particularly for marketing, to foreign subsidiaries.  
 Your Answer:  integrated, parallel decentralization  
Correct Answer:  centralized, decentralization  
Feedback: Difficulty: HardPage: 445 
 


  Question 10    True/False  0 of 1 point(s)    
  
Output controls exist when employees "buy into" the norms and value systems of the firm.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 459 
 

Question 1    Multiple Choice  1 of 1 point(s)    
  
A __________ tends to be favored by firms with a low degree of diversification and a domestic structure based on function.  
 Your Answer:  worldwide area structure  
Correct Answer:  worldwide area structure  
Feedback: Difficulty: MediumPage: 448-449 
 


  Question 2    Multiple Choice  0 of 1 point(s)    
  
Decision making in a functional structure tends to be:  
 Your Answer:  decentralized  
Correct Answer:  centralized  
Feedback: Difficulty: MediumPage: 446 
 


  Question 3    Multiple Choice  0 of 1 point(s)    
  
A(n) __________ tends to be adopted by firms that are reasonably diversified and, accordingly, originally had domestic structures based on product divisions.  
 Your Answer:  international geographic division structure  
Correct Answer:  worldwide product division structure  
Feedback: Difficulty: MediumPage: 450 
 


  Question 4    True/False  1 of 1 point(s)    
  
A worldwide product division structure tends to be adopted by firms that are reasonably diversified.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 450 
 


  Question 5    True/False  1 of 1 point(s)    
  
Personal control is control by personal contact with subordinates.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 458 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
In attempting to alleviate or avoid the problems associated with formal integrating mechanisms in general, and matrix structures in particular, firms with a high need for integration have been experimenting with two informal integrating mechanisms. These are:  
 Your Answer:  management teams and organizational citizenship behavior  
Correct Answer:  management networks and organizational culture  
Feedback: Difficulty: MediumPage: 456 
 


  Question 7    True/False  1 of 1 point(s)    
  
By organizational architecture we mean the totality of a firm's organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 440 
 


  Question 8    True/False  1 of 1 point(s)    
  
A firm's vertical differentiation determines where in its hierarchy the decision-making power is concentrated.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 444 
 


  Question 9    Multiple Choice  0 of 1 point(s)    
  
__________ exists when the causes of a subunit's poor performance are ambiguous.  
 Your Answer:  Statutory ambiguity  
Correct Answer:  Performance ambiguity  
Feedback: Difficulty: EasyPage: 460 
 


  Question 10    Multiple Choice  1 of 1 point(s)    
  
__________ control is control through a system of rules and procedures that direct the actions of subunits.  
 Your Answer:  Bureaucratic  
Correct Answer:  Bureaucratic  
Feedback: Difficulty: MediumPage: 458 
 

Question 1    Multiple Choice  0 of 1 point(s)    
  
In transnational firms, the need to realize location and experience curve economies requires some degree of __________ control over global production centers. However, the need for local responsiveness dictates the __________ of many operating decisions, particularly for marketing, to foreign subsidiaries.  
 Your Answer:  decentralized, centralization  
Correct Answer:  centralized, decentralization  
Feedback: Difficulty: HardPage: 445 
 


  Question 2    Multiple Choice  1 of 1 point(s)    
  
There are five main arguments for decentralization. These are:  
 Your Answer:  frees top managers to focus on critical issues by delegating more routine issues to lower-level managers, provides employees a greater degree of individual freedom and control over their work, greater flexibility, can result in better decisions because decisions are made closer to the spot, increases control  
Correct Answer:  frees top managers to focus on critical issues by delegating more routine issues to lower-level managers, provides employees a greater degree of individual freedom and control over their work, greater flexibility, can result in better decisions because decisions are made closer to the spot, increases control  
Feedback: Difficulty: HardPage: 445 
 


  Question 3    Multiple Choice  1 of 1 point(s)    
  
__________ exists when the causes of a subunit's poor performance are ambiguous.  
 Your Answer:  Performance ambiguity  
Correct Answer:  Performance ambiguity  
Feedback: Difficulty: EasyPage: 460 
 


  Question 4    Multiple Choice  1 of 1 point(s)    
  
Four types of control systems are used in multinational firms. These are:  
 Your Answer:  personal controls, bureaucratic controls, output controls, and cultural controls  
Correct Answer:  personal controls, bureaucratic controls, output controls, and cultural controls  
Feedback: Difficulty: MediumPage: 458 
 


  Question 5    True/False  1 of 1 point(s)    
  
Processes can be found at very few levels within an organization.  
 Your Answer:  false 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 463 
 


  Question 6    Multiple Choice  1 of 1 point(s)    
  
Which of the following is not true regarding a worldwide area structure?  
 Your Answer:  Decision-making responsibilities are centralized  
Correct Answer:  Decision-making responsibilities are centralized  
Feedback: Difficulty: HardPage: 449-450 
 


  Question 7    True/False  1 of 1 point(s)    
  
Output controls exist when employees "buy into" the norms and value systems of the firm.  
 Your Answer:  false 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 459 
 


  Question 8    True/False  1 of 1 point(s)    
  
Production managers are typically concerned with production issues such as capacity utilization, cost control, and quality control.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 454 
 


  Question 9    Multiple Choice  1 of 1 point(s)    
  
The person in a subunit that is responsible for coordination with another subunit is referred to as a:  
 Your Answer:  liaison  
Correct Answer:  liaison  
Feedback: Difficulty: MediumPage: 455 
 


  Question 10    Multiple Choice  1 of 1 point(s)    
  
Which of the following selections correctly lists the formal integrating mechanisms from the highest level of complexity to the lowest?  
 Your Answer:  Matrix structure, teams, liaison roles, direct contact  
Correct Answer:  Matrix structure, teams, liaison roles, direct contact  
Feedback: Difficulty: HardPage: 455